Money Matters

Subscribe to Money Matters via RSS

The fallout from our current economic crisis is hitting all of us, sometimes in ways we least expect. While many homeowners are struggling to hold onto their homes, many are faced with the prospect of having to sell. In the present economy, that is difficult enough. However, for those whose homes are condominiums, Fannie Mae has implemented new guidelines that can make it more difficult than previously to complete a sale. HUD has adopted similar new temporary regulations which went into effect on December 7, 2009 and remain effective until December 31. 2010, at which time more restrictive permanent regulations become effective.Continue Reading New Lending Rules – Fannie Mae and HUD

Sometimes, when circumstances prevent collecting delinquent assessments from owners by more traditional methods, a receivership may assist the association in getting paid. Further, even if other collection options are available, a receivership may help you receive your assessments more quickly.

A receivership is started by filing a lawsuit in County or District court. Unlike other lawsuits…

With record rainfalls this season, Colorado community associations and managers have stayed busy responding to reports of water intrusion and hail damage. After the immediate excitement subsides, our phones start ringing. Managers and board members typically ask us some variation of the following questions about insurance:

Is the association or the owner responsible for insurance coverage? This question often arises in the context of condominium and townhome communities, and the answer depends on what the governing documents and controlling statutory provisions say. Often, the documents do not give clear guidance on which party bears the burden for insuring specific components, hence the call to the attorneys. The answers sometimes come as a surprise to uneducated owners and even association boards.

We recommend that associations evaluate insurance obligations with legal counsel and their insurance professionals to ensure proper coverage and to enable clear communication with owners about what coverage applies. Through the preparation of insurance and maintenance charts that summarize association and owner obligations, and the adoption of insurance guidelines that state insurance coverage responsibilities and provide step-by-step procedures for reporting and handling claims, associations can proactively educate owners and reduce confusion when losses occur.Continue Reading Rain, Rain, Go Away — All this damage … who will pay?

We have all heard from time to time about an association manager or officer who gets caught with his hand (or more) in the association’s cookie jar. The most recent account making headlines has to do with a manager in Virginia who has been convicted of stealing $3 million from over 350 different homeowners associations. We shake our heads and are thankful that our association isn’t the victim of such a potentially disastrous crime. But sometimes, it is just a matter of luck that our association hasn’t suffered such a loss, or we are lucky that everybody providing services to the association is trustworthy.Continue Reading Fiscal Irresponsibility In Your Association? Embezzlement and What You Can Do to Help Prevent It

This is the second part of a three part series discussing when an owner’s liability for assessments terminates when going through a divorce, foreclosure and/or bankruptcy proceeding. The first part of the series dealt with divorce proceedings. This part addresses public trustee foreclosure of a lender’s lien created by a recorded deed of trust (for purposes of this discussion, a deed of trust is the same as a mortgage).Continue Reading Owner Responsibility During Foreclosure Proceedings

You just received a notice from a homeowner that they have filed for bankruptcy. The matter is quickly turned over to the association’s attorney together with an updated account ledger to ensure that the requisite paperwork is timely filed to protect the association’s interest. How does a manager or board properly account for assessments and fees which come due after the filing of the bankruptcy? Unfortunately, this is an issue faced by managers and boards on a regular basis.  Continue Reading Bankruptcies: Accounting Suggestions and the Importance of Maintaining Liens

We have received many questions regarding when a homeowner’s obligation to pay assessments terminates as a result of being in or having completed a divorce, bankruptcy or foreclosure proceeding. The quick answer is that an owner is responsible for all assessments for as long as he or she is an owner as evidenced by a recorded document, a deed. For purposes of discussion it does not matter what type of deed is recorded to prove ownership or how the party came into ownership. Also, this article will only deal with collection cases, not lawsuits for foreclosure or receiverships. Continue Reading Who is Responsible for Assessments

The migration away from paper products is a hot trend these days. The benefits of such a move for a homeowners association are clear – not only does it save trees, it also saves money (less paper, postage, and storage costs). In short, being green saves green. But can an Association truly become paperless? Not yet, but as computer technology and the use of the internet become more and more advanced, the answer is closer to becoming yes. Below are some steps your Association can take to start freeing itself from the paper weight:Continue Reading The Paperless Association – Myth or Reality?

Community association board members fill tough roles that require a great deal of attention to association business. We understand that, as board member volunteers, you need guidance from professionals to facilitate informed decision-making, allowing you to uphold your fiduciary duties to the association that you serve. To assist you in evaluating the legal priorities for your community, we have created this Legal Audit checklist. 

Place a check mark in the box beside each statement that applies to your community association.

My community association has . . .

?  adopted the seven mandatory Senate Bill 05-100 policies. 

Senate Bill 05-100 requires all associations to adopt seven different responsible governance policies concerning (1) the adoption and amendment of policies, (2) board member conflicting interest transactions, (3) covenant enforcement and fines, (4) collection of delinquent assessments, (5) conduct of meetings, (6) inspection and copying of records and (7) reserve fund investments.

?  adopted the Senate Bill 06-89 dispute resolution policy. 

Senate Bill 06-89 requires all associations to adopt a policy concerning disputes between owners and the association.

?  updated Senate Bill 05-100 policies to conform to Senate Bill 06-89 requirements. 

Senate Bill 06-89 modified some of the terms of Senate Bill 05-100, creating recommended changes to the responsible governance policies.

Continue Reading Community Association Legal Audit (Part 1 of 2)